Energy Transfer in talks to sell Sunoco worth over $3.3 billion
12 March 2016
US pipeline company Energy Transfer Equity LP has held talks to sell gas station and convenience store operator Sunoco LP, Reuters today reported, citing three people familiar with the matter.
Energy Transfer held talks to sell Sunoco earlier this year after it was approached by at least one interested company, but did not materialise since there were disagreements over valuation, the report said.
Buyers for Sunoco's gas station network could include Canada's Alimentation Couche-Tard Inc, Valero Energy Corp and Tesoro Corp, the report added.
Sunoco, which has a market cap of $3.3 billion, Sunoco is a master limited partnership that distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors.
It also operates more than 830 convenience stores and retail fuel sites and conducts its business through wholly owned subsidiaries, as well as through its 31.58 per cent interest in Sunoco, LLC, in partnership with an affiliate of its parent company, Energy Transfer Partners.
Although its main businesses are natural gas, natural gas liquids, crude oil and refined products transportation, Energy Transfer Partners also operates a retail and fuel distribution business through its interest in Sunoco, LLC, as well as wholly owned subsidiary, Sunoco, Inc., which operate approximately 440 convenience stores and retail fuel sites.